2018 earnings season buoys stocks’ trading as index rises by 0.3%
Expectations of bumper returns on investment, as listed companies churn out their 2018 financials, buoyed transactions on the equity sector of the Nigeria Stock Exchange (NSE) last week, causing investors’ wealth to increase marginally by 0.3 per cent.
At the close of transactions last week, the NSE All-Share Index and market capitalisation appreciated by 0.31 per cent to close the week at 31,924.51 points and N11.905 trillion respectively.Similarly, all other indices finished higher with the exception of the NSE Insurance, NSE Consumer Goods, NSE Oil/Gas, NSE Lotus II and NSE Industrial Goods indices, which depreciated by 1.3 per cent, 1.02 per cent, 2.56 per cent, 1.09 per cent and 1.72 per cent respectively.
The Chief Research Officer of Investdata Consulting Limited, Ambrose Omodion said: “As investors continue to watch the body language of newly re-elected President Muhammadu Buhari and hopes for changes in economic policies to chart a new course for economic growth and development, we expect the volatility and profit taking to continue in the midst of more earnings expectation.
“Volatility will also continue as investors and fund managers reposition their portfolios, with eyes fixed on earnings reports, but investors should review their positions in line with their investment goals, strength of the company numbers and act as events unfold in the global and domestic environment,”
Consequentially, a turnover of 1.290 billion shares worth N13.873 billion was recorded in 17,307 deals, lower than a total of 1.752 billion shares valued at N19.681 billion that was exchanged in 22,319 deals during the preceding week. The financial services Industry (measured by volume) led the activity chart with 1.084 billion shares valued at N11.612 billion, traded in 11,169 deals, thus contributing 84.06 per cent to the total equity turnover volume .
The conglomerates industry followed with 57.699 million shares worth N93.347 million in 810 deals, while the third place was consumer Goods Industry, with a turnover of 56.938 million shares worth N938.881 million in 2,627 deals. Trading in the top three Equities namely, Zenith Bank Plc, Diamond Bank Plc and FBN Holdings Plc (measured by volume) accounted for 460.632 million shares worth N5.754 billion in 4,087 deals, contributing 35.70 percent to the total equity turnover volume.
Also traded during the week were 2,971 units of Exchange Traded Products (ETPs) valued at N766,883.30, executed in seven deals compared with a total of 101,254 units valued at N577,835.06 that was transacted last week in 19 deals. Accordingly, .a total of 15,496 units of Federal Government Bonds valued at N15.750 million were traded this week in 12 deals compared with a total of 25,740 units valued at N26,597 million transacted last week in 22 deals.
Similarly, 34 equities appreciated in price during the week, lower than 60 in the previous week, as 38 equities depreciated in price, higher than 21 equities of the previous week, while 96 equities remained unchanged higher than 87 equities recorded in the preceding week.Still, 24 equities appreciated in price during the week, lower than 26 in the previous week and 37 equities depreciated in price, lower than 38 equities of the previous week, while 107 equities remained unchanged higher than 104 equities recorded in the preceding week.
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